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VOA: Europe hit by record high energy prices

VOA: Europe hit by record high energy prices

Energy prices have alarmed European leaders and shaken global markets in the first weeks of October, raising concerns about a fuel crisis during the winter season that could favor gas-rich Russia.

In Europe, natural gas prices have risen nearly 600% this year from concerns that current low stock levels will be insufficient for the winter. In the United States, meanwhile, natural gas has recently reached its highest level in 12 years.

On Wednesday (October 13th), the European Commission released a package of measures to boost energy prices, which have limited industrial production and left European consumers with higher heating bills as winter approaches.

German energy firm E.ON temporarily suspended new natural gas supply contracts for homes, the company said on Tuesday (October 12th) as suppliers across Europe are facing a huge increase in demand following the expiration of insulation measures. due to the pandemic.

Germany currently has no shortage of gas supplies, a ministry spokesman said Wednesday when asked if the government would take action to fill the country's deposits in response to the global price hike.

The country's gas reserves are currently 75% full and continue to be filled, said the spokesman of the Ministry of Energy, adding that the storage capacity of German gas is higher than that of other countries such as. Britain.

Uncertainties over the impact that rising energy prices may have on inflation and rising interest rates have hit global stock and bond markets in Europe.

With consumers facing a huge rise in fuel bills in the winter, energy prices have topped the European Union's political agenda.

The EU, which imports 90% of its gas, notes that Russia had not followed the example of its other main supplier, Norway, in increasing supplies.

President Vladimir Putin said Wednesday that Russia was increasing gas supplies to Europe and was ready to stabilize the market.

But the deputy director of the Russian gas company Gazprom was quoted as saying that the storage of natural gas in underground deposits in Russia was continuing. Gazprom also said this week that it would prioritize its market over export sales because it is expected to have a cold, snowy winter.

Some European parliamentarians have alluded that Gazprom has not increased gas supplies, in a bid to push for swift approval of Nord Stream 2, a newly built pipeline that will send Russian gas to Germany. The United States and some European countries oppose the project, saying it would make the EU even more dependent on Russian fuel.

Russia has consistently denied having any political agenda.

EU ministers debated whether the union should start collectively buying gas, thus improving their negotiating position and creating strategic supply reserves.

EU Energy Commissioner Kadri Simson said underground gas deposits were more than 75% filled across Europe and countries have enough to cover their winter needs, but that rising prices proved the need to move on. speed to renewables.

However, gas reserves in the EU are at a 10-year low.

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